Solana (SOL) Plunges Lower, Market Sentiment Turns Sharply Bearish

Solana failed to settle above $85 and trimmed most gains. SOL price is now consolidating losses above $80 and might continue to move down.

• SOL price started a fresh decline below $84 and $82 against the US Dollar.
• The price is now trading below $82 and the 100-hourly simple moving average.
• There was a break below a declining channel with support at $82 on the hourly chart of the SOL/USD pair (data source from Kraken).
• The price could start a recovery wave if the bulls defend $80 or $78.50.

Solana price failed to remain stable above $84 and started a fresh decline, like Bitcoin and Ethereum. SOL declined below the $82 and $81.50 levels.

Besides, there was a break below a declining channel with support at $82 on the hourly chart of the SOL/USD pair. The bears even pushed the price toward $80. A low was formed at $79.92, and the price is now consolidating losses below the 23.6% Fib retracement level of the downward move from the $84.65 swing high to the $79.92 low.

Solana is now trading below $82 and the 100-hourly simple moving average. On the upside, immediate resistance is near the $81.10 level. The next major resistance is near the $82.20 level or the 50% Fib retracement level of the downward move from the $84.65 swing high to the $79.92 low.

The main resistance could be $82.80. A successful close above the $82.80 resistance zone could set the pace for another steady increase. The next key resistance is $84.50. Any more gains might send the price toward the $85 level.

If SOL fails to rise above the $82.80 resistance, it could continue to move down. Initial support on the downside is near the $80 zone. The first major support is near the $78.50 level.

A break below the $78.50 level might send the price toward the $72 support zone. If there is a close below the $72 support, the price could decline toward the $70 support in the near term.

Technical Indicators

Hourly MACD – The MACD for SOL/USD is gaining pace in the bearish zone.

Hourly Hours RSI (Relative Strength Index) – The RSI for SOL/USD is below the 50 level.

Major Support Levels – $79.92 and $78.50.

Major Resistance Levels – $82.20 and $82.80.